ReElement extends antimony refining contract to 10 years

FISHERS, IN - American Resources Corporation (NASDAQ:AREC), currently trading at $0.70 per share with a market capitalization of approximately $57 million, and its portfolio company ReElement Technologies Corporation have announced the extension of their antimony tolling agreement, now set to span a decade. According to InvestingPro data, the company’s stock has experienced significant volatility, having declined over 43% in the past six months. This extension is designed to bolster ReElement’s capabilities to supply antimony(III) sulfide and antimony(III) oxide to both commercial and defense sectors.

The agreement, which involves the processing of stibnite ore into high-purity antimony compounds, is expected to generate annual tolling revenues exceeding $29 million from its initial phase. This represents a significant opportunity for the company, with InvestingPro analysts forecasting substantial revenue growth of over 249% for the current fiscal year. This extension also aligns with the projected growth in domestic demand for antimony, a material essential in various applications including batteries and munitions.

Mark Jensen, CEO of American Resources and ReElement, stated that the extended contract duration offers greater value to stakeholders and ensures a reliable supply for customers. The company is set to increase its antimony refining capacity at its Marion, Indiana facility and is exploring additional sites for expansion.

The move comes after China’s ban on exports of critical minerals to the United States in late 2024, which has underscored the significance of establishing a secure domestic supply of these materials. Antimony’s global market, particularly for Antimony(III) oxide, was valued at around $852 million in 2023 and is expected to grow steadily over the next decade.

ReElement’s initial operations will process approximately 500 metric tons of stibnite ore per month, with the potential to increase volumes based on market demand.

American Resources Corporation specializes in the critical mineral supply chain, focusing on the extraction and processing of materials vital for steelmaking and electrification markets. ReElement Technologies, a key player in refining rare earth and critical battery elements, employs innovative technologies to support a sustainable supply chain.

This extended agreement underscores a strategic move to fortify the United States’ critical mineral independence and resilience in the face of international trade tensions.

The information for this article is based on a press release statement.

In other recent news, American Resources Corporation has finalized the sale of its subsidiary, American Infrastructure Corporation, to CGrowth Capital. This transaction involves the distribution of approximately 60 million common shares and 10 million Series A Preferred shares to AIC shareholders. Additionally, American Resources has announced the appointment of Tony Carroll to the Board of Directors of its subsidiary, ReElement Technologies Africa Ltd., aiming to leverage Carroll’s extensive experience in U.S.-Africa trade and policy.

The company has also enhanced its rare earth refining capabilities through ReElement Technologies, emphasizing its role in securing a domestic supply chain for critical minerals amid China’s export restrictions. In line with this, American Resources has introduced a new modular leaching technology to extract rare earth elements from coal and mine waste, which will be refined into high-purity products by ReElement Technologies. Furthermore, the company has successfully closed a private capital round with a $150 million pre-money valuation, enabling the procurement of new commercial-scale equipment for its Indiana facilities.

These developments underscore American Resources’ strategic efforts to address the increasing demand for domestically produced rare earth elements and critical minerals.

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